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Regulatory Challenges of Compounded Weight-Loss Drugs, VT’s Lawsuit against Major PBMs & More

July 23, 2024 (1 min read)

Compounded Weight-Loss Drugs Creating Headaches for State Regulators

With popular weight-loss drugs like Mounjaro, Ozempic and Wegovy in short supply, many doctors, pharmacies and other providers have begun offering compounded versions of the drugs tailored to the needs of individual patients. They’re allowed to do so because the active ingredients in the drugs—semaglutide or tirzepatide—are listed on the U.S. Food and Drug Administration’s drug shortage list.

While commercial drugs are regulated by the FDA, states are responsible for the licensing and oversight of compounding pharmacies, and they’re now struggling to stay on top of that job. Idaho and Tennessee recently announced investigations of medical spas and other providers that may have been dispensing compounded weight-loss drugs illegally. And California and other states are considering strengthening their oversight of providers that offer such drugs. (NATIONAL CONFERENCE OF STATE LEGISLATURES)

VT AG Sues State’s Biggest PBMs

Vermont Attorney General Charity Clark (D) filed a lawsuit against pharmacy benefit managers Express Scripts and CVS Caremark, accusing them of squeezing out competition and driving up prescription drug costs. The suit claims the two PBMs control more than 95% of Vermont’s pharmacy benefit market, giving them the power to dictate which drugs are covered by insurers. (LAW360)

Drug Makers Challenge KS Law Protecting Discounted Prescription Drugs

AstraZeneca and AbbVie have filed lawsuits challenging legislation enacted in Kansas in April (SB 28) preventing drug companies from limiting the ability of pharmacies under contract with eligible hospitals and clinics to obtain outpatient prescription drugs at discounted prices, as provided for by the federal 340B drug discount program. The drug makers claim the federal program wasn’t intended to cover pharmacy chains like CVS and Walgreens. (KANSAS REFLECTOR)

—Compiled by SNCJ Managing Editor KOREY CLARK

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